North Korean leader Kim Jong-un raises his hand in response to applause during a session of the 15th Supreme People’s Assembly in Pyongyang, Sunday. (Korean Central Television via Yonhap)
North Korean leader Kim Jong-un raises his hand in response to applause during a session of the 15th Supreme People’s Assembly in Pyongyang, Sunday. (Korean Central Television via Yonhap)

North Korea has said it will increase its state budget by more than 5 percent this year, in what appears to be a move to expand spending on both economic development and defense.

The Rodong Sinmun, the ruling party’s official newspaper, reported Tuesday on the outcome of the 15th Supreme People’s Assembly, saying the country had decided to raise this year’s state expenditures to 105.8 percent of last year’s level.

The exact size of the budget was not disclosed. North Korea has not released the total figure since the early 2000s, when it was reported at around 38.8 billion North Korean won in 2002. As the North Korean won is not freely traded in international markets and is prone to volatility, it is notoriously difficult to express in relative dollar terms over a period of years.

North Korea’s annual budget had grown at a relatively slow pace in recent years, rising by around 1 percent annually from 2021 to 2023, and by 3.4 percent in 2024 and 3.8 percent in 2025.

A significant portion of the increase is expected to be allocated to economic development.

The Rodong Sinmun said spending for “socialist economic construction” will rise to 105.5 percent of last year’s level, accounting for 43.8 percent of total expenditures. The paper said the move is aimed at ensuring “stable and sustained development of the overall economy.”

The increase comes as North Korea continues to invest in major state-led projects.

Since 2024, Pyongyang has been pushing its “20×10 regional development policy,” which aims to build modernized factories in 20 regions over a decade to boost local economies.

The country has also been carrying out large-scale housing construction projects across the nation, including in Pyongyang, since 2021.

Defense spending is also expected to remain a priority.

According to the Rodong Sinmun, 15.8 percent of the total budget has been allocated to national defense, with the funds aimed at “continuously strengthening self-defensive nuclear deterrence and war-fighting capabilities.”

North Korea’s defense spending has remained in the mid-15 percent range in recent years, accounting for 15.7 percent in 2025 and 15.9 percent in both 2024 and 2023.


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